Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Pumpkin Patch cuts annual earnings forecast; shares fall

Pumpkin Patch cuts annual earnings forecast; shares fall

By Tina Morrison

May. 23 (BusinessDesk) - Pumpkin Patch, the second-worst performing stock on New Zealand's All Ordinaries Index the past year, signalled full-year earnings may plummet on sluggish demand and price discounting in its main New Zealand and Australian markets.

After-tax earnings before reorganisation costs may be between $1 million and $3 million in the year ending July 31, down from the company's previous guidance that earnings would be unchanged from the $8.5 million a year earlier, the Auckland-based children's clothing retailer said in a statement. It didn't detail the likely reorganisation costs. The guidance is subject to any material change to trading conditions, exchange rates or international partners' delivery schedules across June and July.

The company's shares dropped 2 percent to 50 cents, and have declined 56 percent the past year, the worst-performer after fellow clothing retailer Postie Plus Group.

"Trading conditions in the company’s key Australian and New Zealand retail markets have remained at levels similar to those experienced across the first-half period," Pumpkin Patch said. "The trading environment is volatile and continues to be dominated by high levels of promotional activity and lacklustre consumer demand especially in Australia where there is little sign of any meaningful improvement in the near term."

Pumpkin Patch expects to provide an update on its strategic review of the company's underperformance and opportunities to boost earnings by the end of June.

"While key long term operational and brand related strategies have not yet been finalised the review to date has identified a range of system and process investment requirements that will generate improvements in underlying earnings and working capital and debt requirements," the company said.

The stock is rated a 'hold' according to the average recommendation of analysts compiled by Reuters.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Maritime: Navigation Safety Review Raises Big Issues For The Govt

Shipping Federation: "The reports makes it clear that the ratification of the Maritime Labour convention (MLC) is long overdue. Only when the MLC is ratified will Maritime NZ be able to inspect and enforce the labour conditions on international ships visiting our ports." More>>

ALSO:

100 Years After Einstein Prediction: Gravitational Waves Found

For the first time, scientists have observed ripples in the fabric of spacetime called gravitational waves, arriving at the earth from a cataclysmic event in the distant universe. This confirms a major prediction of Albert Einstein’s 1915 general theory of relativity and opens an unprecedented new window onto the cosmos. More>>

ALSO:

Farming: Alliance Plans To Start Docking Farmer Payments

Alliance Group, New Zealand's second-largest meat cooperative, plans to start withholding some stock payments to its farmers from next week to bolster its balance sheet and force suppliers to meet their share requirements. More>>

ALSO:

Gambling: SkyCity First Half Profit Rises 30%, Helped By High Rollers

SkyCity anticipates the Auckland business will benefit from government gaming concessions which were triggered on Nov. 11 in recognition of SkyCity’s $470 million Convention Centre development. Morrison said the concessions would allow the Auckland business to lift its activity during peak period, noting it had a record revenue week over the Christmas and New Year period. More>>

ALSO:

Money For Light: Kiwi Scientists Secure Preferential Access To Synchrotron

Science and Innovation Minister Steven Joyce today announced a three-year investment of $2.8 million in the Australian Synchrotron, the largest piece of scientific infrastructure in the Southern Hemisphere, to secure preferential access for Kiwi scientists. More>>

Telco Industry Report: Investment Hits $1.7 Bln A Year

Investment in the telecommunications sector is $1.7 billion a year, proportionately one of the highest levels in the OECD, according to a report released today on the status of the New Zealand sector. More>>

ALSO:

PGPs: New Programme Sets Sights On Strong Wool

A new collaboration between The New Zealand Merino Company (NZM) and the Ministry for Primary Industries (MPI), announced today, aims to deliver premiums for New Zealand's strong wool sector... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news